Natalija Gelvanovska. Head of Access and Networks division. Communications Regulatory Authority of the Republic of Lithuania (RRT)
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1 Natalija Gelvanovska Head of Access and Networks division Communications Regulatory Authority of the Republic of Lithuania (RRT) Lithuanian broadband The developments view expressed in this presentation is a personal view of the author and do not necessarily represent the view of RRT 1 Slide Structure Introduction: What is Broadband; What is a driving need for Broadband: Internet matters and Expanding content. Broadband physically: Passive infrastructure matters; Development bottlenecks; Legal issues: New policy focus; Recent Lithuanian policy developments. Key findings & Conclusions. 2 Slide 1
2 What is Broadband? Broadband still means different things to different people; Broadband is a technological term having to do with the quantity and quality of information that can be exchanged over a distance using telecommunications channels... But the term includes much more broadband is a business and social goal to be achieved, a way of expressing corporate and public aspirations for a more perfect society based on people s ability to get more of what they want, faster. Source: Flournoy What is considered? Formally in EU: Broadband capacity means Capacity equal to, or higher than, 144 Kbit/s Source: European Commission Ultra Broadband referring to the provision of access solutions operating at downstream speeds of over 20 Mbps Source: idate 3 Slide What is better for Broadband: Technology matters ECTA survey suggests that wire-line technologies such as xdsl and fiber are better adapted than wireless for providing high speeds and bandwidth-hungry applications. Only a few wireless connections were offering more than 2Mbit/s while the very high speed services with 10Mbit/s or more were entirely dominated by wire-line connections. Source: ECTA Broadband Scorecard 4 Slide 2
3 Perspective Revenues from fixed data, primarily broadband, continue to grow strongly while falling traffic volumes in fixed telephony networks can be attributed to the continuing switch to IP and mobile services; Broadband is an environment for all types of services and a requirement (already) for Internet access service: Globally accessible bandwidth-hungry applications are highly appreciated: Growing bitrate requirements... 50% YoY. Internet access killer application for Broadband? 5 Slide Expanding Content Ability to reach global content drives not only a need for Internet access itself, it drives a need for Broadband access: Global knowledge base: Mainly work related Global social networks ( user generated media) remain to be between the most searched on the Internet: The most searched words on Google in 2006 (BBC): Bebo MySpace World Cup Metacafe Radioblog Wikipedia Video Rebelde Mininova Wiki 6 Slide 3
4 represents ~84 proc, of Eastern Europe P2P traffic Source: Ipoque 7 Slide Expanding content (4) 95 % of all VoI (Voice over Internet) compose Skype traffic. VoI is used by 30 % of all Internet users, at the same time VoI composes 1 % of all Internet traffic Source: Ipoque number of online users exceeded 10 mln. Source: Skype Journal Source: Flickr Lithuanian broadband developments In 2Q % of all Skype calls were video calls Source: 8 Slide ebay 4
5 Broadband infrastructure practically, i.e. physically How much of Broadband infrastructure your country has in the ground? National interest is to have as much as possible Right time for discussions Networks are both expanding and upgrading: Expansion of Electronical Communication Services; Natural evolution of infrastructure: In terms of technology: - PSTN NGN; - xdsl technologies will reach their limits during the next decade; In terms of media: Copper wire Fiber optic cable 9 Slide Perspective again Lifetime of the fiber plant is ~40 years: without any major modification of the passive infrastructure and no introduction of additional components in the fiber plant, it s easy to upgrade transmission speeds... even on a per-customer basis. Wolfgang Fischer, Cisco Systems. Passive infrastructure created today will remain unchanged for years 10 Slide 5
6 What is difficult about Broadband development To develop a physical infrastructure is rather very expensive NGA deployments: FTTN in Germany for 37% of population: 4,8 billion ; FTTH in France for 7% of population: 3,4 billion ; FTTN: Deliver minimum downlink speeds of 12 Mbps to 98% of Australian homes billion AUD to enable the roll-out. Source: WIK Consult Rather billions than millions of Investments Source: IDATE 11 Slide In more details Civil works represent 60 90% of the total rollout costs: 80% of the total rollout costs of NGA Source: European Commission Cost consideration for P2P Ethernet Access network: Source: Corning & FTTH Council Europe 12 Slide 6
7 How will own tomorrow s infrastructure? other sectors (i.e. energy) participate in construction of Passive infrastructure suitable for Ultra-Broadband provision: 13 Slide Policy issues new Focus National policy should: focus on possibilities to Reduce roll-out costs: use existing infrastructure where possible; lay pipes whenever possible; promote of build&share projects and equal participation in the infrastructure planning and building process. enable operators to build wire-based networks: granting of rights to use public property, esp. road-corridors; Duct sharing; Promoting access to ducts and corridors of other utilities. 14 Slide 7
8 Lithuanian policy issues Symmetrical obligations: Symmetrical facility sharing obligation under the Law of Electronical Communications in place since 2004: Detailed regulation in place since 2005; Reference offer for Duct access available from 2005: Successful commercial product; Significant number of networks were developed (i.e. cable); Dispute resolution procedure adopted to resolve facility sharing disputes. 15 Slide Lithuanian policy issues (1) New co-building procedure implementing guidelines for coordinated infrastructure development intended to reduce roll-out costs: Applicable symmetrically for all planned electronical communications infrastructure developments suitable for simultaneous roll-out of more infrastructure; Under Public consultation until April 2009; Amendments for guidelines of construction of electronical communications networks extended to explicitly cover infrastructure construction in blocks (of flats): focusing on inlets to the buildings, ducting and in-building wiring. 16 Slide 8
9 Lithuanian policy issues (2) Asymmetrical obligations: Obligations in Market of Unbundled access to the local loop remain in place: No real interest in LLU Mainly due to reasonable conditions for Access to ducts; New market of access to physical infrastructure (new market 4) is under research final decision planned in autumn 2009; Developments in joint stock company TEO LT access network may involve new forms of access (other than LLU); In March 2009, joint stock company TEO LT announced its plans to invest 1 mlrd. LTL (~ 29 mln. EUR) in NGA over 4 5 years as well as to keep 50 % of Broadband market and to gain 50 % of digital TV market. Source: Verslo žinios 17 Slide Key findings & Conclusions Wired technologies are recognized to be more suitable for (Ultra) Broadband provision; Both natural technological changes and expansion of electronical communications determine that network operators are both upgrading and expanding their passive infrastructure: Civil works are clearly representing an economical bottleneck for development of passive infrastructure; policy decision could reduce roll-out costs and contribute for further broadband development. Created passive infrastructure will remain unchanged for years; 18 Slide 9
10 Key findings & Conclusions (2) Understanding is changing SMP doctrine itself is not enough Possibility to impose Access to physical infrastructure under SMP doctrine is limited in terms of: number of undertakings; scope of infrastructure. Need for symmetrical obligations is involved by: the fact that owners of fiber access networks are players of different domain; the need to reduce roll-out costs: optimal (re) use of all existing infrastructure and joint construction (co-building) framework. 19 Slide Natalija Gelvanovska Communications Regulatory Authority of the Republic of Lithuania 20 Slide 10
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